When Britain became the first country to strike a trade deal with President Trump in May, critics warned that the terms were loose and the commitments vague. Now the risks of this lack of clarity become clear.
The United States informed the British government this month that it will suspend implementation of a technology-related agreement between the two countries that includes greater cooperation in artificial intelligence and nuclear energy, according to two people familiar with the decision who were not authorized to speak publicly. The move came because American officials believed Britain was not making sufficient progress in reducing trade barriers as promised in the May trade deal, the people said.
When British Prime Minister Keir Starmer courted Mr. Trump earlier this year to avoid trade tariffs, he delivered an invitation from King Charles for a state visit. When Mr. Trump arrived for his visit in September, British officials wanted to show that it wasn't all banquets and pageantry. At that time, the two countries vowed to deepen their partnership and signed the so-called Tech Prosperity Deal, which expanded research collaborations and fostered deeper commercial partnerships. America's biggest tech companies announced more than $40 billion in investments in the UK for AI, data centers and other technologies.
However, the wording of the technology agreement between Britain and the United States states that it will only come into force “once substantial progress is made in the formalization and implementation” of the May trade agreement, which was dubbed the “Economic Prosperity Deal.”
Now the Trump administration has argued that Britain has made insufficient efforts. It shows how the administration continues to use trade policy to pressure foreign governments for more concessions on trade and other policies. The White House kept negotiations with the countries open for months after the president announced that the agreements had been finalized.
Some conditions in the British agreement were particularly loose. While there were firm commitments to reduce tariffs on British cars exported to the United States up to a certain quota and to increase exports of American beef to Britain, other issues remained unresolved.
These included the United States' desire to increase agricultural exports and Britain's desire to relax its food safety standards. American officials have also expressed frustration with Britain's online security rules and taxes on digital services. The agreement said the two countries would “work constructively to improve access to the agricultural market” and “negotiate an ambitious package of digital trade provisions.”
In the months that followed, Britain made no changes to its digital services tax, which raises most of its money from big American companies like Amazon and Google. There was also no new agreement on food exports.
Peter Kyle, Britain's Minister for Business and Trade, was in the United States last week and met with U.S. officials, including Trade Secretary Howard Lutnick, U.S. Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent, to discuss moving forward with the May trade deal.
According to a Department for Business and Trade spokesman, Mr Kyle “emphasized the importance of maintaining momentum in implementing all aspects of the UK-US agreement” and discussed tariffs on whiskey and steel, as well as cooperation on critical minerals. “Both sides agreed to continue further negotiations in January,” the spokesman added.
A government spokesman said on Saturday that Britain was “firmly committed to ensuring the Tech Prosperity Deal delivers opportunities for hard-working people in both countries.”
A spokeswoman for the U.S. Trade Representative declined to comment.
The Trump administration has now struck limited trade deals with 15 nations to change what it sees as unfair trade practices and boost U.S. exports.
However, negotiators often encountered obstacles as they worked to convert verbal commitments between leaders into the text of a trade agreement. Some agreements announced verbally still need to be finalized.
Another question was whether some foreign countries were becoming less willing to make concessions to the United States. The Trump administration has begun offering some exemptions from the tariffs as concerns grow about the levies' impact on prices and affordability. The administration also faces a Supreme Court case that could invalidate many of the president's tariffs, although administration officials have said they could use other legal bodies to replace them.